The former CFO of New York hedge fund Boston Provident Partners has pleaded guilty to bilking the firm out of $3 million.

Ezra Levy, who was the firm’s chief trader, admitted to trading for his own benefit at Boston Provident’s expense. Originally charged with stealing and swindling $1.3 million from the firm, Levy acknowledged getting more than twice as much.

In one case, Levy netted $600,000 selling shares he owned to Boston Provident at an inflated price.

“I used those funds to pay my personal expenses,” Levy told U.S. District Judge Kevin Castel. He pleaded guilty to one count each of securities and wire fraud.

Levy faces up to six-and-a-half years in prison at his sentencing on June 18. He remains free on $1 million bond. Levy has also been sued by the Securities and Exchange Commission.

Boston Provident is headed by Orin Kramer, a well-known Democratic Party fundraiser and chairman of the New Jersey State Investment Council. The hedge fund said Kramer would personally reimburse the losses and pay the legal fees stemming from the case.

From the current issue of

Forecasting markets has always been fraught with danger for analysts and traders alike. MODERN TRADER has dedicated issues detailing the pitfalls of following so-called markets gurus. Too often these market experts are allowed to flaunt their winning forecasts and let their losers fade into the background.